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HARMONY GOLD MINING COMPANY LIMITED - Results for the second quarter FY16 and six months ended 31 December 2015

Release Date: 04/02/2016 07:05:00      Code(s): HAR       PDF(s):  
Results for the second quarter FY16 and six months ended 31 December 2015

Harmony Gold Mining Company Limited
("Harmony" or "Company")
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
JSE share code: HAR
NYSE share code: HMY
ISIN: ZAE000015228

RESULTS FOR THE SECOND QUARTER FY16 AND SIX MONTHS ENDED 31 DECEMBER 2015

Q2 FY16

KEY FEATURES
Quarter on quarter
- Safety parameters improving; working towards zero harm
- 7% increase in underground recovered grade
- 2% increase in production
- AISC down by 7% at R434 834/kg (down 15% to US$950/oz)
- 84% increase in production profit to R1.29 billion (up 68% to US$91 million)
- Headline earnings of R74 million (US$5 million) 
- Net debt reduction of R127 million (US$29 million)

                                                                            Q-on-Q                  
                                                     Quarter   Quarter    variance  
                                                      Dec-15    Sep-15           %  
Gold produced                        – kg              8 929     8 752           2  
                                     – oz            287 074   281 385           2  
Cash operating costs                 – R/kg          360 153   384 810           6  
                                     – US$/oz            787       921          15  
Gold sold                            – kg              8 999     8 743           3  
                                     – oz            289 323   281 094           3  
Underground grade                    – g/t              5.33      4.99           7  
Total costs and capital              – R/kg          417 368   443 730           6  
                                     – US$/oz            912     1 062          14  
All-in sustaining costs              – R/kg          434 834   466 061           7  
                                     – US$/oz            950     1 115          15  
Gold price received                  – R/kg          507 490   473 567           7  
                                     – US$/oz          1 109     1 133         (2)  
Production profit                    – R million       1 292       701          84  
                                     – US$ million        91        54          68  
Basic profit/(loss) per share        – SAc/s              17     (120)        >100  
                                     – USc/s               1       (9)        >100  
Headline earnings/(loss)             – Rm                 74     (523)        >100  
                                     – US$m                5      (40)        >100  
Headline earnings/(loss) per share   – SAc/s              17     (120)        >100  
                                     – USc/s               1       (9)        >100  
Exchange rate                        – R/US$           14.24     13.00          10  

FORWARD-LOOKING STATEMENTS

PRIVATE SECURITIES LITIGATION REFORM ACT 

Safe Harbour Statement

This report contains forward-looking statements within the meaning of the safe harbour provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended, with respect to our financial condition, results of operations, business strategies, operating efficiencies, competitive positions, growth opportunities for existing services, plans
and objectives of management, markets for stock and other matters. These include all statements other than statements of historical fact, including, without limitation, any statements proceeded by,
followed by, or that include the words "targets", "believes", "expects", "aims" "intends" "will", "may", "anticipates", "would", "should", "could", "estimates", "forecast", "predict", "continue"
or similar expressions or the negative thereof.

These forward-looking statements, including, among others, those relating to our future business prospects, revenues and income, wherever they may occur in this report and the exhibits to this
report, are essentially estimates reflecting the best judgement of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those
suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered in light of various important factors, including those set forth in this report.
Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation: overall economic and business
conditions in South Africa, Papua New Guinea, Australia and elsewhere, estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices, estimates of future gold and
other metals production and sales, estimates of future cash costs, estimates of future cash flows, and the sensitivity of cash flows to the gold and other metals prices, statements regarding future debt
repayments, estimates of future capital expenditures, the success of our business strategy, development activities and other initiatives, estimates of reserves statements regarding future exploration
results and the replacement of reserves, the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, fluctuations in the market price of gold, the
occurrence of hazards associated with underground and surface gold mining, the occurrence of labour disruptions, power cost increases as well as power stoppages, fluctuations and usage constraints,
supply chain shortages and increases in the prices of production imports, availability, terms and deployment of capital, changes in government regulation, particularly mining rights and environmental
regulation, fluctuations in exchange rates, the adequacy of the Group's insurance coverage and socio-economic or political instability in South Africa and Papua New Guinea and other countries in
which we operate.

For a more detailed discussion of such risks and other factors (such as availability of credit or other sources of financing), see the Company's latest Integrated Annual Report on Form 20-F which is on
file with the Securities and Exchange Commission, as well as the Company's other Securities and Exchange Commission filings. The Company undertakes no obligation to update publicly or release
any revisions to these forward-looking statements to reflect events or circumstances after the date of this annual report or to reflect the occurrence of unanticipated events, except as required by law.

HARMONY'S ANNUAL REPORTS 
Harmony's Integrated Annual Report and the Form 20-F filed with the United States' Securities and Exchange Commission
for the financial year ended 30 June 2015 are available on our website at
http://www.harmony.co.za/investors/reporting/annual-reports. 

CONTACT DETAILS

CORPORATE OFFICE

Randfontein Office Park
PO Box 2, Randfontein, 1760, South Africa
Corner Main Reef Road/Ward Avenue
Randfontein, 1759, South Africa
Tel: +27 11 411 2000
Website: www.harmony.co.za

DIRECTORS

P T Motsepe* Chairman
M Motloba*^ Deputy chairman
P W Steenkamp Chief executive officer
F Abbott Financial director
H E Mashego Executive director
F F T De Buck*^ Lead independent director
J A Chissano*(1)^, K V Dicks*^, Dr D S S Lushaba*^,
C Markus*^, M Msimang*^, K T Nondumo*^,
V P Pillay *^, J L Wetton*^, A J Wilkens*
*   Non-executive
^   Independent
(1) Mozambican

INVESTOR RELATIONS TEAM

Email: HarmonyIR@harmony.co.za

Marian van der Walt
Executive: Corporate and Investor Relations
Tel: +27 (0)11 411 2037
Mobile: +27 (0)82 888 1242
Email: marian@harmony.co.za

Henrika Ninham
Investor Relations Manager
Tel: +27 (0)11 411 2314
Mobile: +27 (0)82 759 1775
Email: henrika@harmony.co.za

COMPANY SECRETARY

Riana Bisschoff
Tel: +27 (0)11 411 6020
Mobile: +27 (0)83 629 4706
Email: riana.bisschoff@harmony.co.za

SOUTH AFRICAN SHARE TRANSFER SECRETARIES

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House
19 Ameshoff Street
Braamfontein, 2001
PO Box 4844, Johannesburg, 2000, South Africa
Tel: +27 86 154 6572
Fax: +27 86 674 2450
Email: meetfax@linkmarketservices.co.za

ADR(2) DEPOSITARY

Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company
Peck Slip Station
PO Box 2050, New York, NY 10272-2050
Email queries: db@amstock.com
Toll Free: +1-800-937-5449
Intl: +1-718-921-8137
Fax: +1-718-921-8334
(2) ADR: American Depository Receipts

SPONSOR

J.P. Morgan Equities South Africa (Pty) Ltd
1 Fricker Road, corner Hurlingham Road
Illovo
Johannesburg, 2196
Private Bag X9936, Sandton, 2146, South Africa
Tel: +27 11 507 0300
Fax: +27 11 507 0503

TRADING SYMBOLS

JSE Limited: HAR
New York Stock Exchange, Inc: HMY
Berlin Stock Exchange: HAM1

REGISTRATION NUMBER

1950/038232/06
Incorporated in the Republic of South Africa

ISIN

ZAE000015228

COMPETENT PERSON'S DECLARATION
In South Africa, Harmony employs an ore reserve manager at
each of its operations who takes responsibility for the compilation
and reporting of mineral resources and mineral reserves at
their operations. In Papua New Guinea, competent persons are
appointed for the mineral resources and mineral reserves for
specific projects and operations.

These competent persons, who are full-time employees of Harmony,
consent to the inclusion in the report of the matters based on the
information in the form and context in which it appears.

-  Resources and reserves of South Africa:
Jaco Boshoff, BSc (Hons), MSc, MBA, Pr. Sci. Nat, MSAIMM,
MGSSA, who has 20 years' relevant experience, is registered
with the South African Council for Natural Scientific Professions
(SACNASP) and is a member of the South African Institute of
Mining and Metallurgy (SAIMM).

Mr Boshoff is Harmony's Lead Competent Person.

-  Resources and reserves of Papua New Guinea:
Gregory Job, BSc, MSc, who has 27 years' relevant experience and
is a member of the Australian Institute of Mining and Metallurgy
(AusIMM).

For more information on Harmony's reserves and resources as
at 30 June 2015, please refer to https://www.harmony.co.za/
investors/reporting/annual-reports.

Mineral resource and reserve information as at 30 June 2015
has not changed.

SHAREHOLDER INFORMATION

Issued ordinary share capital at 31 December 2015          436 789 929
Issued ordinary share capital at 30 September 2015         436 187 133

MARKET CAPITALISATION
At 31 December 2015 (ZARm)                                       6 814
At 31 December 2015 (US$m)                                         440
At 30 September 2015 (ZARm)                                      3 764
At 30 September 2015 (US$m)                                        272

HARMONY ORDINARY SHARES AND
ADR PRICES
12-month high (1 January 2015 – 31 December 2015)
for ordinary shares                                              16.25
12-month low (1 January 2015 – 31 December 2015)
for ordinary shares                                               8.13
12-month high (1 January 2015 – 31 December 2015)
for ADRs                                                          1.34
12-month low (1 January 2015 – 31 December 2015)
for ADRs                                                          0.53

FREE FLOAT                                                        100%

ADR RATIO                                                          1:1

JSE LIMITED                                                        HAR
Range for quarter (1 October – 31 December 2015
closing prices)                                         R16.25 – R8.13
Average daily volume for the quarter (1 October –
31 December 2015)                                     1,740,583 shares
Range for quarter (1 July – 30 September 2015
closing prices)                                         R15.99 – R8.40
Average daily volume for the quarter (1 July –
30 September 2015)                                    2,196,866 shares

NEW YORK STOCK EXCHANGE
including other US trading platforms                               HMY
Range for quarter (1 October – 31 December 2015
closing prices)                                      US$1.03 – US$0.53
Average daily volume for the quarter (1 October –
31 December 2015)                                            1,991,128
Range for quarter (1 July – 30 September 2015
closing prices)                                      US$1.34 – US$0.60
Average daily volume for the quarter (1 July –
30 September 2015)                                    3,565,559 shares

INVESTORS' CALENDAR
Q3 FY16 presentation (webcast and conference
calls only)                                                27 May 2016
Q4 FY16 live presentation from Johannesburg             17 August 2016
Release of FY16 Integrated Report and Form 20-F        26 October 2016
Q1 FY17 presentation (webcast and conference
calls only)                                           14 November 2016
Annual General Meeting                                25 November 2016

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

During my first five weeks at Harmony, I have spent time
with senior management, visited the various operations and met
with the operational teams in both South Africa and Papua New
Guinea. I am very impressed with the quality of our management
and mining teams. The company owns excellent ore bodies.
I have no doubt that the teams can deliver on their plans during
financial year 2016.

Harmony recorded another solid set of results for the second
quarter of financial year 2016 – three consecutive quarters of
increased delivery. Underground grade was 7% higher, the majority of
our operations produced higher kilograms with most of the
operations generating net free operational cash flow except
for Kalgold, Kusasalethu and Hidden Valley. Combined with
a 7% increase in the average R/kg gold price received from
R473 567/kg in the September 2015 quarter to R507 490/kg
during the quarter under review, revenue increased by 10% to
R4.57 billion (to US$321 million).

Higher production, combined with an increase in the R/kg gold
price, means that Harmony's cash flow is strengthened, our
margins are growing, we are able to repay our debt and able to fund Golpu.
During December 2015 we repaid R1.12 billion (US$78 million) of our debt.
At quarter end our net debt was at R2.52 billion (US$162 million).

Despite the gold price trading around multi-year lows in US dollar
terms, Harmony, with 94% of its operating revenue generated
in South Africa, benefits from the weak rand which more than
offsets the impact of the low US dollar gold price.

SAFETY
Harmony's safety statistics are improving – both quarter on
quarter as well as year on year. Regrettably the South African
operations did report two fatalities during the quarter. The men
who lost their lives were Carlos Sitoe (stoper at Masimong) and
Moeketsi Mongoako (rock drill operator at Target). Our heartfelt
condolences go to the families, friends and colleagues of these
men. We will continue to work towards zero harm.

OPERATIONAL
After a good performance in gold production in Q1FY16, gold
production for the December 2015 quarter increased by a further
2% to 8 929 kilograms/287 074 ounces. The increase was mainly
due to our mines keeping their momentum most notably Hidden
Valley recovering after the previous quarter and the improved
results flowing through from Doornkop post its restructuring.

Overall, Harmony's production profit increased by 84% to
R1.29 billion (68% to US$91 million) quarter on quarter, mainly
due to a 7% increase in the gold price received and supported by
a 2% increase in gold production.

All-in sustaining costs for all operations decreased by 7%
to R434 834/kg in the December 2015 quarter, compared
to R466 061/kg in the September 2015 quarter (15% decrease to
US$950/oz). Cash operating costs for the December 2015 quarter
decreased by 6% to R360 153/kg (15% decrease to US$787/oz).

Gold production at the following operations increased during the
December 2015 quarter:

-    Hidden Valley (+189kg)(+ 6 077oz). Tonnes milled increased
     by 103 000t (33%) whilst recovered grade improved by
     17% to 1.28g/t, resulting in a 55% improvement in gold
     produced. Hidden Valley's performance during the December
     2015 quarter is not in line with plan as yet, as it was adversely
     affected by poor grade and road closures which restricted
     mining activity. Although an improvement on the prior
     quarter, which had significant production stoppages due to a
     fatality, the continued high cost nature of this operation has
     resulted in the suspension of pre-strip activities until metal
     prices significantly improve. Currently accessible ore sources
     remain available for the remainder of calendar year 2016,
     with the site remaining focused on safely operating at a free
     cash flow neutral or better position. The joint venture partners
     are concurrently assessing all strategic options in relation to
     the future of the asset.

-    Joel (+112kg) (+3 601oz) improved gold production by 21%,
     due to a 21% increase in recovered grade to 4.69g/t;

-    Target 1 (+76kg) (+2 443oz) increased tonnes milled by 8%
     resulting in an 8% increase in gold produced;

-    Phakisa (+62kg) (+1 993oz) increased gold production by 6%,
     due to a 6% improvement in the recovered grade to 5.87g/t;

-    Dumps (+45kg) (+1 447oz) increased tonnes milled by 11%
     and recovered grade improved by 5% to 0.39g/t, resulting in
     an 18% increase in gold produced;

-    Doornkop (+44kg) (+1 415oz) recorded a 7% increase in gold
     produced post the restructuring of the mine, as a result of a
     7% improvement in the recovered grade to 4.73g/t, partially
     offset by a 9% decrease in tonnes milled resulting in a 7%
     increase in gold produced;

-    Kalgold (+33kg) (+1 061oz) increased gold production by
     12% when compared to the September 2015 quarter. This
     was mainly due to an 8% improvement in the recovery grade
     to 0.81g/t and a 4% increase in tonnes milled.

The following operations recorded a decrease in production
quarter on quarter:

-    Masimong (-122kg) (-3 923oz) was impacted by the fatal
     accident and milled 29 000 tonnes (15%) less than in the
     September 2015 quarter which was the main reason for the
     17% decrease in gold production;

-    Tshepong (-113kg) (-3 633oz) recorded a 6% decrease in the
     recovery grade to 4.43g/t and a 3% decrease in tonnes milled.
     Production results were however in line with the operation's
     plan;

-    Bambanani's (-82kg) (-2 637oz) recovered grade decreased
     by 6% to 13.82g/t for the quarter under review, but still
     higher than the 11.5g/t guided for the year and tonnes milled
     decreased by 3%;

-    Kusasalethu (-51kg) (-1 640oz) milled 72 000 (32%) tonnes
     less than in the September 2015 quarter. This was mainly
     due to the reduction of waste after the re-commissioning
     of the waste pass system. The reduction of
     the waste to reef ratio combined with a 7% increase in the
     face grade for the December 2015 quarter, resulted in a 39%
     increase in the recovered grade to 6.25g/t.

     The infrastructure related problems at this mine are however
     continuing and management is in the process of assessing the
     best way in which to address these issues.

I anticipate that the third quarter will show lower production due
to late start-ups post the December 2015 quarter and the Easter
holidays which also fall within the March quarter. I believe our
annual guidance of approximately 1.1 million ounces will not be
affected.

FINANCIAL RESULTS

Revenue
Revenue increased by 10% as a result of the 3% increase in gold
sold to 8 999kg/289 323 oz and a 7% increase in the average gold
price received at R507 490/kg (decrease of 2% to US$1 109/oz) in
the December 2015 quarter.

Production costs
Production costs decreased by 5% to R3.28 billion (decreased
by 13% to US$230 million) in the December 2015 quarter. The
decrease is mainly a result of the decrease in electricity cost of
R189 million (US$13 million) due to the higher winter electricity
price tariffs included in the September 2015 quarter.

Exploration expenditure
The increase in exploration expenditure quarter on quarter can be
attributed to an additional drill rig commissioned at Kili Teke.

Other expenses – net
The total of R369 million (US$26 million) in the December 2015
quarter is mainly due to a foreign exchange translation loss of
R374 million (US$26 million) recorded on the US$ borrowings. The
rand weakened by 13% from US$/R13.87 at 30 September 2015
to US$/R15.62 at 31 December 2015.

Profit/(loss) per share
We are pleased to report a 17 SA cents (1 US cents) profit per
share for the December 2015 quarter, improved from the loss per
share of 120 SA cents (9 US cents) for September 2015 quarter.

Cash and cash equivalents
Cash and cash equivalents decreased by R611 million
(US$51 million) due to the debt repayment
of R1.12 billion (US$78 million), offset by net cash generated of
R501 million (US$33 million).

Borrowings
Harmony repaid R1.12 billion (US$78 million) of its debt during the
December 2015 quarter. Repayments consisted of US$50 million
on its US$250 million Revolving Credit Facility and R400 million on
its R1.3 billion facility. The repayments were partially offset by the
foreign translation loss recorded due to the weakening of the rand
exchange rate against the US dollar.

GOLPU
Harmony, together with our joint venture partner Newcrest Mining
Limited, continued discussions with the Papua New Guinean
government on the appropriate terms on which to progress the
pre-mining development agreement.

Golpu is a fantastic asset, which the feasibility study confirms.
The study was completed in December 2015 and is subject to
both joint venture partners' approval before we will be able to
share the results in mid-February 2016.

EXPLORATION
Harmony is one of the few gold mining companies that continue
to spend on exploration. Kili Teke – which is 100% held by
Harmony – is a gold-copper asset which we discovered. A maiden
gold equivalent resource of 4 million ounces was declared for
the Kili Teke copper-gold deposit in November 2015; containing
506 000 tonnes of copper, 1.2 million ounces of gold and 22 000
tonnes of molybdenum.

The Mineral Resource comprises 128 million tonnes at 0.4%
copper, 0.3 g/t Au, 170 ppm molybdenum and was completed in
accordance with the guidelines of the SAMREC and JORC (2012
edition) codes. The Mineral Resource is classified as Inferred, and
has been defined over a zone 600m long, 300m wide and 400m
deep. A second rig was mobilised to site to accelerate the resource
definition and conversion process.

CONCLUSION
Harmony's share price responded following a weaker rand at the
beginning of December 2015 and Harmony's announcement
that it started repaying its debt. It continued its upward trend
throughout January 2016. Each of our mines has been positioned
to deliver safe, profitable ounces and my focus will be to deal
with the ones that aren't, to ensure that Harmony benefits from
a higher gold price.

Peter Steenkamp
Chief Executive Officer

OPERATING RESULTS – QUARTER ON QUARTER (RAND/METRIC) (US$/IMPERIAL)
                                                                                                                                          South Africa
                                                                                                      Underground production                                                       Surface production
                                Three                                                                                                                                                                                       Total
                              months                                                                                                                           Total                                          Total        South       Hidden        Total
                               ended   Kusasalethu    Doornkop    Phakisa    Tshepong     Masimong    Target 1     Bambanani         Joel      Unisel    Underground    Phoenix      Dumps       Kalgold    Surface       Africa       Valley      Harmony
Ore milled         - t'000     Dec-15           155         150        178         272          160         197            62          139         110          1 423      1 660        753           374      2 787        4 210          419        4 629
                               Sep-15           227         164        178         281          189         183            64          139         112          1 537      1 644        676           360      2 680        4 217          316        4 533
Gold produced      - kg        Dec-15           969         709      1 044       1 206          606       1 082           857          652         462          7 587        209        296           302        807        8 394          535        8 929                      
                               Sep-15         1 020         665        982       1 319          728       1 006           939          540         477          7 676        210        251           269        730        8 406          346        8 752    
                   - oz        Dec-15        31 154      22 795     33 565      38 774       19 483      34 787        27 553       20 962      14 854        243 927      6 719      9 517         9 710     25 946      269 873       17 201      287 074                     
                               Sep-15        32 794      21 380     31 572      42 407       23 406      32 344        30 190       17 361      15 336        246 790      6 752      8 070         8 649     23 471      270 261       11 124      281 385
Yield              - g/tonne   Dec-15          6.25        4.73       5.87        4.43         3.79        5.49         13.82         4.69        4.20           5.33       0.13       0.39          0.81       0.29         1.99         1.28         1.93 
                               Sep-15          4.49        4.05       5.52        4.69         3.85        5.50         14.67         3.88        4.26           4.99       0.13       0.37          0.75       0.27         1.99         1.09         1.93
Cash               - R/kg      Dec-15       447 254     356 415    316 269     362 768      418 186     286 296       229 501      321 026     404 123        343 965    372 742    355 578       441 887    392 322      348 614      541 196      360 153                   
operating                      Sep-15       479 826     409 116    348 017     347 719      365 380     314 830       222 508      389 857     388 352        358 168    393 214    385 948       515 428    435 751      364 906      868 384      384 810 
costs              - $/oz      Dec-15           977         779        691         793          914         626           501          701         883            752        814        777           965        857          762        1 182          787
                               Sep-15         1 148         979        833         832          874         753           532          933         929            857        941        923         1 233      1 043          873        2 078          921
                   - R/tonne   Dec-15         2 796       1 685      1 855       1 608        1 584       1 572         3 172        1 506       1 697          1 834         47        140           357        114          695          691          695
                               Sep-15         2 156       1 659      1 920       1 632        1 407       1 731         3 265        1 515       1 654          1 789         50        143           385        119          727          951          743
Gold sold          - kg        Dec-15           944         718      1 070       1 236          621       1 126           879          682         474          7 750        197        288           270        755        8 505          494        8 999                   
                               Sep-15         1 072         680        966       1 297          716         970           924          555         470          7 650        212        263           266        741        8 391          352        8 743
                   - oz        Dec-15        30 350      23 084     34 401      39 738       19 966      36 202        28 260       21 927      15 239        249 167      6 334      9 259         8 681     24 274      273 441       15 882      289 323                 
                               Sep-15        34 466      21 862     31 058      41 699       23 020      31 186        29 707       17 844      15 111        245 953      6 816      8 456         8 552     23 824      269 777       11 317      281 094
Revenue            (R'000)     Dec-15       475 337     364 032    544 357     628 933      315 875     570 371       447 580      347 220     241 147      3 934 852     99 887    146 543       137 278    383 708    4 318 560      248 345    4 566 905
                               Sep-15       508 322     322 224    457 404     613 671      339 013     462 161       435 752      262 500     222 241      3 623 288    100 421    124 576       125 932    350 929    3 974 217      166 176    4 140 393
Cash operating     (R'000)     Dec-15       433 389     252 698    330 185     437 498      253 421     309 772       196 682      209 309     186 705      2 609 659     77 903    105 251       133 450    316 604    2 926 263      289 540    3 215 803                   
costs                          Sep-15       489 423     272 062    341 753     458 642      265 997     316 719       208 935      210 523     185 244      2 749 298     82 575     96 873       138 650    318 098    3 067 396      300 461    3 367 857
Inventory          (R'000)     Dec-15      (13 278)       8 918      8 183      12 020        6 948      17 234         8 573       13 949       4 218         66 765    (4 055)    (3 580)      (13 824)   (21 459)       45 306       13 755       59 061                  
movement                       Sep-15        25 452       5 400    (5 714)     (6 134)      (4 334)    (10 296)       (4 696)        5 656     (2 725)          2 609        589      5 155       (2 201)      3 543        6 152       65 767       71 919
Operating costs    (R'000)     Dec-15       420 111     261 616   338 368      449 518      260 369     327 006       205 255      223 258     190 923      2 676 424     73 848    101 671       119 626    295 145    2 971 569      303 295    3 274 864
                               Sep-15       514 875     277 462   336 039      452 508      261 663     306 423       204 239      216 179     182 519      2 751 907     83 164    102 028       136 449    321 641    3 073 548      366 228    3 439 776
Production         (R'000)     Dec-15        55 226     102 416   205 989      179 415       55 506     243 365       242 325      123 962      50 224      1 258 428     26 039     44 872        17 652     88 563    1 346 991     (54 950)    1 292 041                  
profit                         Sep-15       (6 553)      44 762   121 365      161 163       77 350     155 738       231 513       46 321      39 722        871 381     17 257     22 548      (10 517)     29 288      900 669    (200 052)      700 617
                   ($'000)     Dec-15         3 880       7 194    14 469       12 603        3 899      17 095        17 022        8 707       3 528         88 397      1 830      3 151         1 240      6 221       94 618      (3 860)       90 758
                               Sep-15         (504)       3 444     9 337       12 399        5 951      11 982        17 811        3 563       3 056         67 039      1 328      1 735         (810)      2 253       69 292     (15 392)       53 900
Capital            (R'000)     Dec-15        73 426      45 130    75 634       73 790       25 362      82 027        29 526       58 723      14 212        477 830        469      1 686         7 007      9 162      486 992       23 888      510 880                   
expenditure                    Sep-15        89 877      46 623    84 984       65 588       27 599      79 317        23 780       53 186      15 590        486 544        107      1 511        11 021     12 639      499 183       16 481      515 664
                   ($'000)     Dec-15         5 158       3 170     5 313        5 183        1 782       5 762         2 074        4 125         998         33 565         33        118           492        643       34 208        1 678       35 886
                               Sep-15         6 914       3 587     6 538        5 046        2 123       6 102         1 829        4 092       1 199         37 430          8        116           848        972       38 402        1 268       39 670
Cash Operating     - R/kg      Dec-15       523 029     420 068   388 716      423 954      460 038     362 106       263 953      411 092     434 885        406 945    374 986    361 274       465 089    403 675      406 630      585 847      417 368                  
Cost and Capital   - $/oz      Sep-15       567 941     479 226   434 559      397 445      403 291     393 674       247 833      488 350     421 036        421 553    393 724    391 968       556 398    453 064      424 290      916 017      443 730
                               Dec-15         1 143         918       849          926        1 005         791           577          898         950            889        819        789         1 016        882          888        1 280          912                 
                               Sep-15         1 359       1 147     1 040          951          965         942           593        1 169       1 007          1 009        942        938         1 331      1 084        1 015        2 192        1 062
All-in             - R/kg      Dec-15       543 262     439 592   403 492      439 798      491 644     378 399       274 976      382 904     459 895        420 131    378 183    369 575       496 491    417 208      419 322      702 167      434 834
sustaining                     Sep-15       581 984     490 361   450 652      413 998      428 847     412 106       250 346      451 236     443 126        434 829    393 684    404 837       574 506    462 553      436 751    1 163 868      466 061
costs              - $/oz      Dec-15         1 187         960       882          961        1 074         827           601          837       1 005            918        826        808         1 085        912          916        1 547          950              
                               Sep-15         1 393       1 173     1 078          991        1 026         986           599        1 080       1 060          1 040        942        969         1 375      1 107        1 045        2 836        1 115

CONDENSED CONSOLIDATED INCOME STATEMENTS (RAND)

                                                                         Quarter ended                   Six month ended           Year ended   
                                                           31 December    30 September   31 December   31 December   31 December      30 June   
                                                                  2015            2015          2014          2015          2014         2015   
Figures in million                                  Note   (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)    (Audited)   
Revenue                                                          4 567           4 140         3 715         8 707         8 146       15 435   
Cost of sales                                          2       (3 918)         (4 088)       (3 970)       (8 006)       (8 289)     (19 053)   
Production costs                                               (3 275)         (3 439)       (3 096)       (6 715)       (6 614)     (12 632)   
Amortisation and depreciation                                    (531)           (555)         (602)       (1 086)       (1 252)      (2 472)   
Impairment of assets                                                 -               -             -             -             -      (3 471)   
Other items                                                     ( 112)            (94)         (272)         (205)         (423)        (478)   
Gross profit/(loss)                                                649              52        ( 255)           701         (143)      (3 618)   
Corporate, administration and other expenditure                   (93)            (89)          (83)         (182)         (194)        (378)   
Social investment expenditure                                     (14)            (11)          (15)          (25)          (39)         (71)   
Exploration expenditure                                           (60)            (43)          (95)         (103)         (180)        (263)   
Profit on sale of property, plant and equipment                      2               2             1             4             1            6   
Loss on scrapping of property, plant and                                                                                                        
equipment                                                            -               -         (430)             -         (430)        (491)   
Other expenses (net)                                   5         (369)           (443)          (52)         (813)         (239)        (378)   
Operating profit/(loss)                                            115           (532)         (929)         (418)       (1 224)      (5 193)   
Profit/(loss) from associates                          4            35               -             -            35             -         (25)   
Profit on disposal of investments                                    -               -             -             -             -            4   
Net gain/(loss) on financial instruments                           (5)            ( 8)             8         ( 13)            15            9   
Investment income                                                   57              57            59           114           110          229   
Finance cost                                                      (70)            (71)          (67)         (141)         (132)        (264)   
Profit/(loss) before taxation                                      132           (554)         (929)         (423)       (1 231)      (5 240)   
Taxation                                                          (56)              33            73         ( 22)           109          704   
Normal taxation                                                   ( 1)             (1)           (4)          ( 1)           (3)            5   
Deferred taxation                                                 (55)              34            77         ( 21)           112          699   
Net profit/(loss) for the period                                    76           (521)         (856)         (445)       (1 122)      (4 536)   
Attributable to:                                                                                                                                
Owners of the parent                                                76           (521)         (856)         (445)       (1 122)      (4 536)   
Profit/(loss) per ordinary share (cents)               3                                                                                        
Basic profit/(loss)                                                 17           (120)         (197)         (102)         (258)      (1 044)   
Diluted profit/(loss)                                               17           (120)         (197)         (102)         (258)      (1 044)   

Figures may not cross-cast as they are rounded independently.

The accompanying notes are an integral part of these condensed consolidated financial statements.

The condensed consolidated financial statements for the six months ended 31 December 2015 have been prepared by Harmony Gold Mining Company
Limited's corporate reporting team headed by Herman Perry. This process was supervised by the financial director, Frank Abbott and approved by the board of
Harmony Gold Mining Company Limited. These financials have not been audited or independently reviewed.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME (RAND)

                                                                         Quarter ended                      Six months ended       Year ended   
                                                           31 December    30 September   31 December   31 December   31 December      30 June   
                                                                  2015            2015          2014          2015          2014         2015   
Figures in million                                         (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)    (Audited)   
Net profit/(loss) for the period                                    76           (521)         (856)         (445)       (1 122)      (4 536)   
Other comprehensive income/(loss) for the period, net                                                                                           
of income tax                                                      256             216         (114)           472            65           59   
Items that may be reclassified subsequently to profit or                                                                                        
loss:                                                              256             216         (114)           472            65           54   
Foreign exchange translation                                       256             216         (114)           472            65           54   
Items that will not be reclassified to profit or loss:               -               -             -             -             -            5   
Remeasurement of retirement benefit obligation                                                                                                  
Actuarial gain recognised during the year                            -               -             -             -             -            8   
Deferred taxation thereon                                            -               -             -             -             -          (3)   
Total comprehensive income/(loss) for the period                   332           (305)         (970)            27       (1 057)      (4 477)   
Attributable to:                                                                                                                                
Owners of the parent                                               332           (305)         (970)            27       (1 057)      (4 477)   

The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(RAND)
for the six months ended 31 December 2015 (Unaudited)

                                                                                                                Other    Accumulated
Figures in million                                                                         Share capital    reserves            loss    Total
Balance - 30 June 2015                                                                            28 324       3 787         (5 358)   26 753
Share-based payments                                                                                   -          99              -        99
Net loss for the period                                                                                -           -           (445)    (445)
Other comprehensive income for the period                                                              -         472              -       472
Balance - 31 December 2015                                                                        28 324       4 358         (5 803)   26 879
Balance - 30 June 2014                                                                            28 325       3 539           (822)   31 042
Share-based payments                                                                                   -         129              -       129
Net loss for the period                                                                                -           -         (1 122)  (1 122)
Other comprehensive income for the period                                                              -          65              -        65
Balance - 31 December 2014                                                                        28 325       3 733         (1 944)   30 114

The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED BALANCE SHEETS (RAND)

                                                                                             At             At               At            At   
                                                                                    31 December   30 September          30 June   31 December   
                                                                                           2015           2015             2015          2014   
Figures in million                                                           Note   (Unaudited)    (Unaudited)        (Audited)   (Unaudited)   
ASSETS                                                                                                                                          
Non-current assets                                                                                                                              
Property, plant and equipment                                                            30 101         29 808           29 548        32 843   
Intangible assets                                                                           878            882              885           883   
Restricted cash                                                                              55             52               48            42   
Restricted investments                                                                    2 434          2 408            2 384         2 366   
Investments in associates                                                       4            10              -                -             -   
Investments in financial assets                                                               5              5                5             5   
Inventories                                                                                  36             36               36            50   
Trade and other receivables                                                     4            74             80               80           120   
Total non-current assets                                                                 33 593         33 271           32 986        36 380   
Current assets                
Inventories                                                                               1 260          1 263            1 292         1 337   
Trade and other receivables                                                                 658            754              746           822   
Income and mining taxes                                                                      11             28               30            43   
Restricted cash                                                                              16             16               16            15   
Cash and cash equivalents                                                                   876          1 487            1 067         1 374   
Total current assets                                                                      2 821          3 548            3 151         3 591   
Total assets                                                                             36 414         36 819           36 137        39 971   
EQUITY AND LIABILITIES                                                                                                                          
Share capital and reserves                                                                                                                    
Share capital                                                                            28 324         28 324           28 324        28 325   
Other reserves                                                                            4 358          4 045            3 787         3 733   
Accumulated loss                                                                        (5 803)        (5 879)          (5 358)       (1 944)   
Total equity                                                                             26 879         26 490           26 753        30 114   
Non-current liabilities                                                                                                       -                 
Deferred tax liabilities                                                                  1 926          1 871            1 906         2 562   
Provision for environmental rehabilitation                                                2 364          2 292            2 218         2 170   
Retirement benefit obligation                                                               170            167              163           255   
Other non-current liabilities                                                                41             39               37            42   
Borrowings                                                                      5         3 092          4 129            3 399             -   
Total non-current liabilities                                                             7 593          8 498            7 723         5 029   
Current liabilities                                                                                                                         
Borrowings                                                                      5           299              -                -         3 121   
Income and mining taxes                                                                       1              1                1             -   
Trade and other payables                                                                  1 642          1 830            1 660         1 707   
                                                                                          1 942          1 831            1 661         4 828   
Liabilities of disposal groups classified as held for sale                                    -              -                -             -   
Total current liabilities                                                                 1 942          1 831            1 661         4 828   
Total equity and liabilities                                                             36 414         36 819           36 137        39 971   

The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (RAND)

                                                                     Quarter ended                       Six months ended          Year ended   
                                                       31 December    30 September   31 December   31 December   31 December          30 June   
                                                              2015            2015          2014          2015          2014             2015   
Figures in million                              Note   (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)        (Audited)   
Cash flow from operating activities                                                                                                             
Cash generated/(utilised) by operations                      1 040             696          (64)         1 736         1 007            1 928   
Interest and dividends received                                 24              23            30            47            55              101   
Interest paid                                                 (39)               -          (23)          (39)          (46)            (108)   
Income and mining taxes refunded                                18               -            39            18            64               85  
Cash generated/(utilised) by operating activities            1 043             719         ( 18)         1 762         1 080            2 006 
Cash flow from investing activities                                                                                                             
(Increase)/decrease in restricted cash                         (4)             (3)           (4)           (7)             -                8   
Decrease in restricted investments                               2               1             -             3             1               31   
Loan to associate                                                7               -         (120)             7         (120)            (120)   
Net additions to property, plant and                                                                                                            
equipment                                          7         (573)           (595)         (748)       (1 168)       (1 399)          (2 827) 
Cash utilised by investing activities                        (568)           (597)         (872)       (1 165)       (1 518)          (2 908) 
Cash flow from financing activities                                                                                                             
Borrowings raised                                                -             300             -           300             -              941   
Borrowings repaid                                          (1 117)               -             -       (1 117)             -            (793) 
Cash generated/(utilised) by financing activities          (1 117)             300             -        ( 817)             -              148 
Foreign currency translation adjustments                        31             (2)          (17)            29          (17)              (8)
Net increase/(decrease) in cash and cash equivalents         (611)             420         (907)        ( 191)         (455)            (762)   
Cash and cash equivalents - beginning of period              1 487           1 067         2 281         1 067         1 829            1 829 
Cash and cash equivalents - end of period                      876           1 487         1 374           876         1 374            1 067   

Figures may not cross-cast as they are rounded independently.

The accompanying notes are an integral part of these condensed consolidated financial statements.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 December 2015 (Rand)

1   Accounting policies
    Basis of accounting
    The condensed consolidated financial statements for the six months ended 31 December 2015 have been prepared in accordance with IAS 34, Interim
    Financial Reporting , JSE Listings Requirements, SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
    Pronouncements as issued by the Financial Reporting Standards Council, and in the manner required by the Companies Act of South Africa. They should
    be read in conjunction with the annual financial statements for the year ended 30 June 2015, which have been prepared in accordance with International
    Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). The accounting policies are consistent with those
    described in the annual financial statements, except for the adoption of applicable revised and/or new standards issued by the International Accounting
    Standards Board.

2   Cost of sales                                                                                                                             
                                                                          Quarter ended                      Six months ended       Year ended   
                                                            31 December    30 September   31 December   31 December   31 December      30 June   
                                                                   2015            2015          2014          2015          2014         2015   
    Figures in million                                      (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)    (Audited)   
    Production costs - excluding royalty                          3 237           3 414         3 074         6 652         6 560       12 537   
    Royalty expense                                                  38              25            22            63            54           95   
    Amortisation and depreciation                                   531             555           602         1 086         1 252        2 472   
    Impairment of assets                                              -               -             -             -             -        3 471   
    Rehabilitation expenditure/(credit)                              16              13             5            28            19          (6)   
    Care and maintenance cost of restructured shafts(1)              37              22            20            58            37          106   
    Employment termination and restructuring costs                    -              15           182            15           230          251   
    Share-based payments                                             60              45            66           105           139          208   
    Other                                                           (1)             (1)           (1)           (1)           (2)         (81)   
    Total cost of sales                                           3 918           4 088         3 970         8 006         8 289       19 053   

(1) Included in the September 2015 quarter is a credit of R15 million relating to an insurance claim approved on the Brand 1A vent shaft explosion.

3   Earnings/(loss) per share                                                                                                                    
                                                                          Quarter ended                      Six months ended       Year ended   
                                                            31 December    30 September   31 December   31 December   31 December      30 June   
                                                                   2015            2015          2014          2015          2014         2015   
                                                            (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)    (Audited)   
    Weighted average number of shares (million)                   435.3           435.1         434.2         435.2         434.1        434.4   
    Weighted average number of diluted shares (million)           436.9           435.7         435.2         436.9         436.1        438.1   
    Total earnings/(loss) per share (cents):                                                                                                     
    Basic loss                                                       17           (120)         (197)         (102)         (258)      (1 044)   
    Diluted loss                                                     17           (120)         (197)         (102)         (258)      (1 044)   
    Headline earnings/(loss)                                         17           (120)         (114)         (103)         (175)        (189)   
    Diluted headline earnings/(loss)                                 17           (120)         (114)         (103)         (175)        (189)   
    Figures in million                                                                                                                           
    Reconciliation of headline earnings/(loss):                                                                                                  
    Net profit/(loss)                                                76           (521)         (856)         (445)       (1 122)      (4 536)   
    Adjusted for:                                                                                                                                
    Profit on disposal of investments(1)                              -               -             -             -             -          (4)   
    Impairment of assets                                              -               -             -             -             -        3 471   
    Taxation effect on impairment of assets                           -               -             -             -             -        (169)   
    Profit on sale of property, plant and equipment                 (2)             (2)           (1)           (4)           (1)          (6)   
    Taxation effect of (loss)/profit on sale of property,                                                                                        
    plant and equipment                                               -               -             -             -             -          (1)   
    Loss on scrapping of property, plant and equipment                -               -           430             -           430          491   
    Taxation effect on loss of scrapping of property, plant                                                                                      
    and equipment                                                     -               -          (69)             -          (69)         (67)   
    Headline earnings/(loss)                                         74           (523)         (496)        ( 449)         (763)        (821)   
    
    (1) There is no taxation effect on this item.                                                                                                

4   Investment in associate
    Harmony's portion of the subordinated shareholders' loan extended to Rand Refinery Proprietary Limited (Rand Refinery) in December 2014 amounts to
    R120 million. This loan forms part of the net investment in associate. At 30 June 2015, Harmony recorded R25 million against the loan for its share of
    losses, as well as a provision for impairment of R15 million.

    Harmony's share of profits for the six months to end of December 2015 totalled R35 million. This profit effectively reversed the loss of R25 million
    recognised against the loan in June 2015 and an investment in associate of R10 million has been recognised on the balance sheet at 31 December 2015.
    The net investment's recoverability was assessed and a provision for impairment of R25 million was recognised in "Other expenses (net)" against the loan.
    The fair value measurement of the net investment is classified as level 3 and is non-recurring.

5   Borrowings
    During the December 2015 quarter, R400 million was repaid on the R1.3 billion Nedbank revolving credit facility and US$50 million on the US$ revolving
    credit facility. During the September 2015 quarter, R300 million was drawn down on the R1.3 billion Nedbank revolving credit facility. The weakening of the
    Rand against the US$ resulted in a foreign exchange translation loss of R374 million being recorded in the December 2015 quarter (September 2015
    quarter: R426 million), increasing the Borrowings balance and Other expenses (net) total.
    
                                                                                                                 US$ facility   Rand facility   
    Figures in million                                                                                              US dollar         SA rand   
    Borrowings summary at 31 December 2015                                                                                                      
    Facility                                                                                                              250           1 300   
    Drawn down                                                                                                            200             300   
    Undrawn committed borrowing facilities                                                                                 50           1 000   
    Maturity                                                                                                         February        December   
                                                                                                                         2018            2016   
    Interest rate                                                                                                  LIBOR + 3%    JIBAR + 3.5%   
       
    The drawn amount of R300 million on the Nedbank facility is repayable during December 2016 and has been reclassified as current.

6    Financial risk management activities
     Fair value determination
     The fair value levels of hierarchy are as follows:

     Level 1:       Quoted prices (unadjusted) in active markets for identical assets;
     Level 2:       Inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly (that is, as prices) or
                    indirectly (that is derived from prices);
     Level 3:       Inputs for the asset that are not based on observable market data (that is unobservable inputs).

     The following table presents the group's assets and liabilities that are measured at fair value by level:
    
                                                                                                  At             At          At            At   
                                                                                         31 December   30 September     30 June   31 December   
                                                                                                2015           2015        2015          2014   
    Figures in million                                                                   (Unaudited)    (Unaudited)   (Audited)   (Unaudited)   
    Available-for-sale financial assets(1)                                                                                                        
    Level 1                                                                                        -              -           -             -   
    Level 2                                                                                        -              -           -             -   
    Level 3                                                                                        5              5           5             5   
    Fair value through profit or loss(2)                                                                                                         
    Level 1                                                                                        -              -           -             -   
    Level 2                                                                                      614            532         538           375   
    Level 3                                                                                        -              -           -             -   
    
    
    (1) Level 3 fair values have been valued by the directors by performing independent valuations on an annual basis.
    (2) The majority of the level 2 fair values are directly derived from the Top 40 index on the JSE, and are discounted at market interest rate. This relates to equity-linked deposits in
    the group's environmental rehabilitation trust funds (included in restricted investments).

7   Net additions to property, plant and equipment                                                                                                   
                                                                            Quarter ended                       Six months ended        Year ended   
                                                              31 December    30 September   31 December    31 December   31 December       30 June   
                                                                     2015            2015          2014           2015          2014          2015   
    Figures in million                                        (Unaudited)     (Unaudited)   (Unaudited)    (Unaudited)   (Unaudited)     (Audited)   
    Capital expenditure - operations                                  511             516           682          1 027         1 278         2 470   
    Capital and capitalised exploration and evaluation                                                                                               
    expenditure for Golpu                                              53              61             1            114            16           119   
    Additions resulting from stripping activities at Hidden                                                                                          
    Valley                                                              9              19            66             28           105           236   
    Other                                                               -             (1)           (1)            (1)             -             2   
    Net additions                                                     573             595           748          1 168         1 399         2 827   

8   Commitments and contingencies                                                                                                                    
                                                                                                     At             At            At            At   
                                                                                            31 December   30 September       30 June   31 December   
                                                                                                   2015           2015          2015          2014   
    Figures in million                                                                      (Unaudited)    (Unaudited)     (Audited)   (Unaudited)   
    Capital expenditure commitments:                                                                                                                 
    Contracts for capital expenditure                                                               166            126           158           172   
    Authorised by the directors but not contracted for                                            1 607          1 980           257         1 646   
                                                                                                  1 773          2 106           415         1 818   

    This expenditure will be financed from existing resources and, where appropriate, borrowings.

    Contingent liabilities
    For a detailed disclosure on contingent liabilities refer to Harmony's annual financial statements for the financial year ended 30 June 2015. There were no
    significant changes in contingencies since 30 June 2015.

9   Related parties
    Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the group, directly or
    indirectly, including any director (whether executive or otherwise) of the group.

    Movement in shares owned by directors/prescribed officers for the six months ended 31 December 2015:
                                                                                                                          Shares       Performance
                                                                                                                    purchased in     shares vested
    Name of director/prescribed officer                                                                              open market      and retained
    Frank Abbott (Financial director)(1)                                                                                 300 000            18 547
    Graham Briggs (Chief executive officer)                                                                                    -            46 874
    Harry "Mashego" Mashego (Executive director)                                                                               -             7 760
    Ken Dicks (Independent non-executive director)(2)                                                                     15 000               n/a
    Johannes van Heerden                                                                                                       -            13 153
    
    (1) Purchased on 15 December 2015.
    (2) Purchased on 8 December 2015.

    Harmony has signed a R150 million guarantee for the ARM Broad Based Economic Empowerment (BBEE) Trust, a member of the African Rainbow
    Minerals (ARM) group. The guarantee is for additional security for the ARM BEE Trust loan due to Nedbank Limited. The fair value of the guarantee was
    R15 million at 31 December 2015, and has been recorded in Other expenses (net) and Trade and other payables.

10  Subsequent events
    Peter Steenkamp was appointed as chief executive officer (CEO) on 1 January 2016, replacing Graham Briggs who resigned as the CEO on 31 December
    2015.

11  Segment report
    The segment report follows on below.


12  Reconciliation of segment information to condensed consolidated income statements and balance sheets
                                                                                                                                   Six months ended
                                                                                                                              31 December   31 December
                                                                                                                                     2015          2014
    Figures in million                                                                                                        (Unaudited)   (Unaudited)
    The "Reconciliation of segment information to condensed consolidated financial statements" line item in the segment
    report is broken down in the following elements, to give a better understanding of the differences between the financial
    statements and segment report:
    Reconciliation of production profit to gross profit
    Total segment revenue                                                                                                           8 707         8 146
    Total segment production costs                                                                                                (6 715)       (6 614)
    Production profit per segment report                                                                                            1 992         1 532
    Depreciation                                                                                                                  (1 086)       (1 252)
    Other cost of sales items                                                                                                       (205)         (423)
    Gross profit as per income statements(1)                                                                                          701         (143)
    
    (1) The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.
 
                                                                                                                                       At            At
                                                                                                                              31 December   31 December
                                                                                                                                     2015          2014
    Figures in million                                                                                                        (Unaudited)   (Unaudited)
    Reconciliation of total segment mining assets to consolidated property, plant and equipment
    Property, plant and equipment not allocated to a segment
    Mining assets                                                                                                                     749           791
    Undeveloped property                                                                                                            5 139         5 139
    Other non-mining assets                                                                                                           183           162
    Wafi-Golpu assets                                                                                                               1 814         1 105
                                                                                                                                    7 885         7 197
 
SEGMENT REPORT (RAND/METRIC)
for the six months ended 31 December 2015 (Unaudited)

                                           Revenue              Production cost        Production profit/(loss)     Mining assets       Capital expenditure#      Kilograms produced      Tonnes milled
                                         31 December             31 December                31 December              31 December            31 December               31 December         31 December
                                       2015        2014        2015        2014           2015         2014       2015        2014       2015         2014          2015       2014     2015        2014
                                          R million               R million                  R million                R million              R million                     kg                 t'000
South Africa
Underground
Kusasalethu                             984       1 005         935       1 065             49         (60)      3 661       3 526        163          247         1 989      2 109      382         476
Doornkop                                686         620         539         566            147           54      2 237       3 332         92          129         1 374      1 346      314         298
Phakisa                               1 002         720         674         589            328          131      4 274       4 625        161          213         2 026      1 628      356         300
Tshepong                              1 243       1 010         902         805            341          205      4 079       3 997        139          171         2 525      2 288      553         528
Masimong                                655         620         522         508            133          112        797         879         53           89         1 334      1 403      349         373
Target 1                              1 032         912         633         596            399          316      2 840       2 799        161          143         2 088      2 052      380         386
Bambanani                               883         617         410         347            473          270        810         842         53           64         1 796      1 391      126         115
Joel                                    610         563         439         419            171          144        673         513        112           90         1 192      1 162      278         285
Unisel                                  463         420         374         342             89           78        567         625         30           61           939        948      222         225      
Target 3(a)                               -         222           -         177              -           45        528         546          -           20             -        483        -          90
Surface
All other surface operations            734         709         617         582            117          127        474         475         22           19         1 537      1 565     5 467      5 225
Total South Africa                    8 292       7 418       6 045       5 996          2 247        1 422     20 940      22 159        986        1 246        16 800     16 375     8 427      8 301
International
Hidden Valley                           415         728         670         618          (255)         110       1 276       3 487         40           33           881       1 519      735        905
Total international                     415         728         670         618          (255)         110       1 276       3 487         40           33           881       1 519      735        905
Total operations                      8 707       8 146       6 715       6 614          1 992        1 532     22 216      25 646      1 026        1 279        17 681     17 894     9 162      9 206
Reconciliation of the segment
information to the condensed
consolidated financial statements
(refer to note 12)                        -           -           -           -                                  7 885       7 197
                                      8 707       8 146       6 715       6 614                                 30 101      32 843

# Capital expenditure for international operations excludes expenditure spend on Golpu of R114 million (2014: R16 million).
(a) Target 3 was placed on care and maintenance in October 2014.

Date of release: 4 February 2016



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